Lawn Care Services Exceeding 5% of Total Charge Taxable in Texas

Wednesday, January 30th, 2019

 
 
Laborer performing lawn care services.
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The Texas Comptroller recently ruled that a lump sum charge for both real property services and other services was taxable.

Texas taxes sales that include taxable services and nontaxable services if (1) the services are sold for a single charge, and (2) the taxable services are worth more than 5% of the total charge. Taxable services include mowing, trimming, fertilizing, watering, and any other treatment or service performed on private or commercial yards or lawns.

Here, the taxpayer owned a golf course on a capped landfill. The taxpayer requested a refund on a lump sum payment for several services. The services included lawn and yard maintenance, landscaping, structural pest control, and waste removal services.

The Comptroller ruled that the taxpayer was not entitled to a refund. The lawn and yard maintenance portion of the lump sum payment accounted for more than 5% of the total charge, so the whole charge was taxable.

https://www.ttrus.com/lawn-care-services-exceeding-5%-of-total-charge-taxable-in-texas


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TTR has a website that companies subscribe to and use daily. This website provides a list of everything that can be bought or sold in the U.S. It provides simple answers to whether buying or selling these items is taxable (subject to a sales tax or other tax), and it provides all the legal authority to support these tax answers.

TTR likes to keep things simple and fun, which is why it has great people who provide help to clients on any support questions they have about transaction tax issues.

Please visit TTR on the web at www.ttrus.com or call 866.578.8193.

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